Thai Chamber Urges Shift Of Money From Populist Schemes To Flood Recovery Efforts

[webfact]

Thai Chamber urges shift of money from populist schemes to recovery efforts

Petchanet Pratruangkrai

The Nation

The Thai Chamber of Commerce yesterday urged the government to delay its populist policies and save enough money for flood rehabilitation, which could cost Bt300 billion to Bt400 billion.

"The government should prioritise each scheme and delay some of its populist policies to ensure the country's growth after the flooding," said Chatchai Boonyarat, TCC vice chairman.

The severe floods in 47 provinces dragged down the Consumer Confidence Index in September to its lowest in four months. The survey by the TCC's university showed that consumer attitudes edged down from 83.4 points in August to 81.8 in September.

Chatchai said the government must review budget allocations for next year, as cutting only 10 per cent of the budget for each ministry would not be enough.

As an immediate measure, the government should set up a Bt50-billion fund to provide zero-interest or soft loans to help enterprises devastated by flooding.

Somkiat Anuras, another vice chairman, said the first-car and first-house programmes and the Bt300 minimum-wage increase should be put on the back burner.

As a long-term measure, the government must devise a national strategy to manage city planning and water resources to ensure a balanced supply of water in the dry and rainy seasons.

Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of the University of the Thai Chamber of Commerce (UTCC), said the flooding would continue to dent consumer sentiment in the following months as the impact will be prolonged.

The government should urgently prioritise measures to help relieve the impact from flooding.

As one such action, the Bank of Thailand should cut the policy interest rate to lower the operating costs of businesses and stimulate domestic spending, Thanavath said.

The UTCC study found that flooding had already caused losses of Bt156.71 billion, or 1.3-1.5 per cent of gross domestic product.

Of those total losses, Bt50.35 billion is from industry, Bt12.34 billion from trading, Bt8.2 billion from tourism and the rest from property and personal assets.

So far, 8.29 million rai (nearly 1.33 million hectares) of rice fields, which can produce about 5 million to 6 million tonnes of paddy rice, have been damaged.

Saowanee Thairungroj, vice president of the UTCC's research division, said consumer confidence remained very fragile on concerns over continued flooding, the rising cost of living and the global economic slowdown.

The impact from flooding to trading, farming and industry, expected lower incomes in the future and the sober spending mood of consumers could drive economic growth down to 3-3.5 per cent this year.

Most indices related to consumer confidence dropped last month.

Confidence in future income fell from 102.1 points in August to 100.3, while the index for future employment opportunities dropped from 74.4 to 73.

TCC chairman Phongsak Assakul said the chamber had set up an ad hoc committee to estimate the losses from flooding and seek proposals on remedial measures for presentation to the government during the next meeting of the Public-Private Joint Standing Committee.

-- The Nation 2011-10-14

[Bakseedaa]

Much of the damage done by flooding is because of corruption, because of bent politicians and corrupt officials, greedy industrialists, illegal logging etc etc.. Why should people who have not been affected by this flooding pay for someone elses mistakes... PTP promised the people those populist policies and should deliver... first the pay rises .. The people were promised and they should get..!! Dont blame the rain for political negligence... We know the brother and sister team to blame....!!

[OzMick]

B300-400 billion, where could they find that sort of moolah. How about dumping the rice pledging scam, and continuing the current price guarantee system, which actually gets the subsidy to the farmers?

Besides saving huge amounts of money, there would be the side benefits of punishing all those stockpiling and importing rice ready for the scam to begin, and keep the rice price and Thailand's market share (relatively) constant.

Of course it won't happen, because everybody knows it's Thaksin's baby, and the Supreme Leader must be obeyed. The barter system is his preference; everybody that had their home flooded will receive a chook, 2 cucumbers and a carrot.

[jayboy]

B300-400 billion, where could they find that sort of moolah. How about dumping the rice pledging scam, and continuing the current price guarantee system, which actually gets the subsidy to the farmers?

Besides saving huge amounts of money, there would be the side benefits of punishing all those stockpiling and importing rice ready for the scam to begin, and keep the rice price and Thailand's market share (relatively) constant.

Of course it won't happen, because everybody knows it's Thaksin's baby, and the Supreme Leader must be obeyed. The barter system is his preference; everybody that had their home flooded will receive a chook, 2 cucumbers and a carrot.

Incredible.At a time of national emergency in which all sides are joining hands, he still finds the time for his bile and hatred.

[OzMick]

B300-400 billion, where could they find that sort of moolah. How about dumping the rice pledging scam, and continuing the current price guarantee system, which actually gets the subsidy to the farmers?

Besides saving huge amounts of money, there would be the side benefits of punishing all those stockpiling and importing rice ready for the scam to begin, and keep the rice price and Thailand's market share (relatively) constant.

Of course it won't happen, because everybody knows it's Thaksin's baby, and the Supreme Leader must be obeyed. The barter system is his preference; everybody that had their home flooded will receive a chook, 2 cucumbers and a carrot.

Incredible.At a time of national emergency in which all sides are joining hands, he still finds the time for his bile and hatred.

I meant it as an actual suggestion on the topic as originally posted. From my home on Samui, spared during THIS flood event, should I weep, tear my hair and gnash my teeth? Should i ignore an obvious scam when the need for funds is at its highest?

[GentlemanJim]

I posted on another thread yesterday, but it should be more appropriately here.

Whatever the physical costs are of the flood damages, and that will be tens of billions if not more, it is the perfect excuse now for the Government to say that tablet computers, minimum wage hikes, graduate wages and free wifi zones are now off the menu because of the costs of unprecedented natural disasters What a lucky Government!!

I wonder if Yingluck was actually praying to the River Goddess to stop or to bring it on

[sfbandung]

B300-400 billion, where could they find that sort of moolah. How about dumping the rice pledging scam, and continuing the current price guarantee system, which actually gets the subsidy to the farmers?

Besides saving huge amounts of money, there would be the side benefits of punishing all those stockpiling and importing rice ready for the scam to begin, and keep the rice price and Thailand's market share (relatively) constant.

Of course it won't happen, because everybody knows it's Thaksin's baby, and the Supreme Leader must be obeyed. The barter system is his preference; everybody that had their home flooded will receive a chook, 2 cucumbers and a carrot.

Incredible.At a time of national emergency in which all sides are joining hands, he still finds the time for his bile and hatred.

I meant it as an actual suggestion on the topic as originally posted. From my home on Samui, spared during THIS flood event, should I weep, tear my hair and gnash my teeth? Should i ignore an obvious scam when the need for funds is at its highest?

Apart from the obvious jibe in your final paragraph (which I believe jb was referring to) it is indeed a good suggestion. Like just about everyone I'm married to a rice farmer's daughter and it should be left like it is.

And if Chambers of Commerce the world over suddenly took control of all the governments, what a fine world we'd find ourselves in. Seriously, here in PNG they almost all have the most sincere expats and the creme of the indigenous businessmen as members.

[sfbandung]

I posted on another thread yesterday, but it should be more appropriately here.

Whatever the physical costs are of the flood damages, and that will be tens of billions if not more, it is the perfect excuse now for the Government to say that tablet computers, minimum wage hikes, graduate wages and free wifi zones are now off the menu because of the costs of unprecedented natural disasters What a lucky Government!!

I wonder if Yingluck was actually praying to the River Goddess to stop or to bring it on

Indeed. But I don't think they need an excuse to back away from largesse that was neither practical or affordable at any stage.

They're politicians, they lie. As in Aesop's scorpion, it's their nature.

[SICHONSTEVE]

B300-400 billion, where could they find that sort of moolah. How about dumping the rice pledging scam, and continuing the current price guarantee system, which actually gets the subsidy to the farmers?

Besides saving huge amounts of money, there would be the side benefits of punishing all those stockpiling and importing rice ready for the scam to begin, and keep the rice price and Thailand's market share (relatively) constant.

Of course it won't happen, because everybody knows it's Thaksin's baby, and the Supreme Leader must be obeyed. The barter system is his preference; everybody that had their home flooded will receive a chook, 2 cucumbers and a carrot.

Incredible.At a time of national emergency in which all sides are joining hands, he still finds the time for his bile and hatred.

Maybe!!! but he does have a valid point - the rice pledging scheme and numerous failed Thaksin policies and Yingluck's (destined to fail policies) have damaged Thailand immensely and will continue to do so, not that those gullible and uneducated Thai's in the North realise this fact.

Why was Thailand not REMOTELY prepared for this??? Don't forget!! this country has been ruled by Thaksin related/styled governments for a big majority of last 2 decades so they must take the lion's share of the blame and please don't say to me that this disaster came "out of the blue" as they are becoming more and more regular, seemingly because of global warming!!!.

What's all this lovey dovey thing about uniting together and joining hands???? The way I see it is that Yingluck is out of her depth on this and has asked for help from Abhisit and other parties irrespective of their affiiations because they are more experienced and cleverer than her and her imbecilic "dummies in arms" that make up her cabinet, allied to the fact that she is incapable of handling something as desperate as this situation:!!!

If only Abhisit was still in control!!!!! He cannot stop the rains but he would do a darned better job of alleviating the problem and preparing for future ones!!!:jap:.

[Emptyset]

Much of the damage done by flooding is because of corruption, because of bent politicians and corrupt officials, greedy industrialists, illegal logging etc etc.. Why should people who have not been affected by this flooding pay for someone elses mistakes... PTP promised the people those populist policies and should deliver... first the pay rises .. The people were promised and they should get..!! Dont blame the rain for political negligence... We know the brother and sister team to blame....!!

The pay rises won't cost the government anything, of course, but it might make things more difficult for small businesses recovering from the floods if they need to pay it.

[jayboy]

Maybe!!! but he does have a valid point - the rice pledging scheme and numerous failed Thaksin policies and Yingluck's (destined to fail policies) have damaged Thailand immensely and will continue to do so, not that those gullible and uneducated Thai's in the North realise this fact.

Why was Thailand not REMOTELY prepared for this??? Don't forget!! this country has been ruled by Thaksin related/styled governments for a big majority of last 2 decades so they must take the lion's share of the blame and please don't say to me that this disaster came "out of the blue" as they are becoming more and more regular, seemingly because of global warming!!!.

What's all this lovey dovey thing about uniting together and joining hands???? The way I see it is that Yingluck is out of her depth on this and has asked for help from Abhisit and other parties irrespective of their affiiations because they are more experienced and cleverer than her and her imbecilic "dummies in arms" that make up her cabinet, allied to the fact that she is incapable of handling something as desperate as this situation:!!!

If only Abhisit was still in control!!!!! He cannot stop the rains but he would do a darned better job of alleviating the problem and preparing for future ones!!!:jap:.

Again trying to make political capital at a time of national emergency.Your points are not even made with insight and intelligence, just childish - "cleverer than her, imbecilic dummies in arms etc" - and badly informed Thaksin bashing.

Grow up.

[OzMick]

Maybe!!! but he does have a valid point - the rice pledging scheme and numerous failed Thaksin policies and Yingluck's (destined to fail policies) have damaged Thailand immensely and will continue to do so, not that those gullible and uneducated Thai's in the North realise this fact.

Why was Thailand not REMOTELY prepared for this??? Don't forget!! this country has been ruled by Thaksin related/styled governments for a big majority of last 2 decades so they must take the lion's share of the blame and please don't say to me that this disaster came "out of the blue" as they are becoming more and more regular, seemingly because of global warming!!!.

What's all this lovey dovey thing about uniting together and joining hands???? The way I see it is that Yingluck is out of her depth on this and has asked for help from Abhisit and other parties irrespective of their affiiations because they are more experienced and cleverer than her and her imbecilic "dummies in arms" that make up her cabinet, allied to the fact that she is incapable of handling something as desperate as this situation:!!!

If only Abhisit was still in control!!!!! He cannot stop the rains but he would do a darned better job of alleviating the problem and preparing for future ones!!!:jap:.

Again trying to make political capital at a time of national emergency.Your points are not even made with insight and intelligence, just childish - "cleverer than her, imbecilic dummies in arms etc" - and badly informed Thaksin bashing.

Grow up.

Do you have anything to offer on the topic other than flaming others suggestions?

[arthurwait]

There was money for these projects ?

[buzz]

There was money for these projects ?

Exactly ... read in Bkk Post last week ... Gov't proposed/estimated spending (with all the popularist policies) for the next financial year is something just over 15 trillion baht ... Gov't Income from all sources estimated to be 8.9 trillion baht ...

( What an excellent timing to cut company tax rates from 30% to 23% )

Get ready for an increase in the VAT to 10% me thinks ... so EVERYONE can pay more (locals, expats AND tourists) ... where else is the shortfall going to come from ?

[buzz]

The pay rises won't cost the government anything,

How's that work ?

Public servants are the first to get it I would've thought ...

[rubl]

Reading the replies I wonder, a lot as well!

If the government needs to save money to be able to recover from the flooding disaster, temporarily suspending various less essential and/or costly projects makes sense. So, how about the controversial rice price pledging scheme which in the five months from Oct, 7th 2011 till Feb, 28th 2012 will costs THB 350 - 410 billion

[OzMick]

Reading the replies I wonder, a lot as well!

If the government needs to save money to be able to recover from the flooding disaster, temporarily suspending various less essential and/or costly projects makes sense. So, how about the controversial rice price pledging scheme which in the five months from Oct, 7th 2011 till Feb, 28th 2012 will costs THB 350 - 410 billion

Careful, you'll be accused of bile and hatred - for what I call the only reasonable answer.

[MILT]

Much of the damage done by flooding is because of corruption, because of bent politicians and corrupt officials, greedy industrialists, illegal logging etc etc.. Why should people who have not been affected by this flooding pay for someone elses mistakes... PTP promised the people those populist policies and should deliver... first the pay rises .. The people were promised and they should get..!! Dont blame the rain for political negligence... We know the brother and sister team to blame....!!

Much of the damage from flooding is because of lot's of water my friend. Just kidding, I blame the water because like the brother and sister team, water always takes the path of least resistance.

[rubl]

Much of the damage done by flooding is because of corruption, because of bent politicians and corrupt officials, greedy industrialists, illegal logging etc etc.. Why should people who have not been affected by this flooding pay for someone elses mistakes... PTP promised the people those populist policies and should deliver... first the pay rises .. The people were promised and they should get..!! Dont blame the rain for political negligence... We know the brother and sister team to blame....!!

Much of the damage from flooding is because of lot's of water my friend. Just kidding, I blame the water because like the brother and sister team, water always takes the path of least resistance.

Last Sunday PM Yingluck went on record with "there's just too much water". I do believe her

[Colin Yai]

I posted on another thread yesterday, but it should be more appropriately here.

Whatever the physical costs are of the flood damages, and that will be tens of billions if not more, it is the perfect excuse now for the Government to say that tablet computers, minimum wage hikes, graduate wages and free wifi zones are now off the menu because of the costs of unprecedented natural disasters What a lucky Government!!

I wonder if Yingluck was actually praying to the River Goddess to stop or to bring it on

Yeah And the many people I have spoken to ,farang and Thai alike are speaking on the same lines as you are writing ,what a perfect excuse to break their many promises ,they was going to break many anyway but now it gives them a bit of credibility

[MaxYakov]

Much of the damage done by flooding is because of corruption, because of bent politicians and corrupt officials, greedy industrialists, illegal logging etc etc.. Why should people who have not been affected by this flooding pay for someone elses mistakes... PTP promised the people those populist policies and should deliver... first the pay rises .. The people were promised and they should get..!! Dont blame the rain for political negligence... We know the brother and sister team to blame....!!

Much of the damage from flooding is because of lot's of water my friend. Just kidding, I blame the water because like the brother and sister team, water always takes the path of least resistance.

Last Sunday PM Yingluck went on record with "there's just too much water". I do believe her

Her rapier-like wit penetrated straight to the heart of the problem. Did she immediately go shopping for some stylish wading boots?

[webfact]

Put populist scheme funds toward recovery: Abhisit

The Nation

Democrat Party leader Abhisit Vejjajiva yesterday called on the government to reallocate funds earmarked for populist policies to the flood recovery effort.

"Before thinking about borrowing foreign loans, the government should curb unnecessary spending such as on the firstcar policy," he said.

Abhisit was reacting to news reports that the government is considering taking out foreign loans to finance rebuilding of floodhit areas and businesses.

-- The Nation 2011-10-15

[OzMick]

Hmm, Abhisit agreeing with the chamber of Commerce - that'll get him called an elitist for sure.

If the govt ignores the advice and goes ahead with the rice pledging scam, (same system as devised by Thaksin which saw only 37% of expenditure actually reaching farmers, and few of them POOR farmers) and it is proved that a Shinawatra company benefited from the scheme, will we have a second Shinawatra PM charged with conflict of interest?

[473geo]

well which ever way the cost of a solution is covered, will be major feather in the cap of this government if they actually provide a viable solution to the annual flooding

Good to see Abhisit getting out there and assisting.......national unity is required

[TAWP]

Again trying to make political capital at a time of national emergency.Your points are not even made with insight and intelligence, just childish - "cleverer than her, imbecilic dummies in arms etc" - and badly informed Thaksin bashing.

Grow up.

You are suggesting that people cannot point out bad things if the nation is going through a big event or national tragedy?

Hm, let me see, where did I hear that before...

[cougar52]

And the Thai Baht is still at 30 to the Dollar and 48 to the Pound ???????????????????????????

[robblok]

And the Thai Baht is still at 30 to the Dollar and 48 to the Pound ???????????????????????????

Id love to see it drop but this is just a temporary setback of an otherwise healthy growing country. The economy is still growing.

Maybe if some japanese companies decide its not safe to invest here and pullback.

Edited October 15, 2011 by robblok

[Thaddeus]

Democrat Party leader Abhisit Vejjajiva yesterday called on the government to reallocate funds earmarked for populist policies to the flood recovery effort.

"Before thinking about borrowing foreign loans, the government should curb unnecessary spending such as on the firstcar policy," he said.

-- The Nation 2011-10-15

Were there any funds put aside for these policies in the first place, I was under the impression that they had to back out of them because there weren't enough funds to provide them all.

And surely they can still live up to the 300 Bt minimum wage can't they, that wasn't going to be funded out of government money anyway.

[scotbeve]

B300-400 billion, where could they find that sort of moolah. How about dumping the rice pledging scam, and continuing the current price guarantee system, which actually gets the subsidy to the farmers?

Besides saving huge amounts of money, there would be the side benefits of punishing all those stockpiling and importing rice ready for the scam to begin, and keep the rice price and Thailand's market share (relatively) constant.

Of course it won't happen, because everybody knows it's Thaksin's baby, and the Supreme Leader must be obeyed. The barter system is his preference; everybody that had their home flooded will receive a chook, 2 cucumbers and a carrot.

How about freezing some of the last administrations bank accts and assets (there's plenty of "dark funds" there)???? EG: where the eff did 20Bn Baht go for flood mitigation alone???? People in the south (this is absolutely magic!!!) who were effected by the Mar. - Apr. floods were PROMISED a measly 5,000 baht for each household affected HOWEVER, only received 2,500 baht per household - oh and the catcher was that some of those areas were not affected at all.... For that matter where did the 1.4 trillion baht BORROWED from MANY countries go??? Sure as heck didn't go into the infrastructure!

[Buchholz]

^ ^ ^ ^ there's 400 Billion Baht available v v v v v